There are two types of production:
- Direct production
- Indirect production
- Direct Production
This is where goods and services are created for immediate consumption. This production satisfies the wants of the producer and his relatives. It is the satisfaction of wants entirely by personal efforts. The producer consumes all what he produces.
Direct production is the feature of the subsistence or traditional economy where nothing is sold.
- Indirect Production
This form of production is as a result of specialization and exchange. This is because the producer obtains indirect satisfaction from the goods and services which he buys with the revenue from the sales of his products or offers his services in return of money.
